Corp. Route for my NFA's.........

[184SFS]

I'm in the process of getting my SBR and I want to go the Corp. route instead of a trust. Can anyone please lay the steps out on what I need to do, please. I figure this is the best route for me since I move quite a bit, thanks.

[khc3]

The rules are different for each state, but in Georgia, I formed a LLC online.

First, I reserved a name for the corp/llc. Then I prepared Articles of Incorporation which listed my wife and me as officers of the LLC (I copied the example Articles of Incorporation that was shown on the Secretary of State of my state's website; it was very simple), and mailed that in with $100 check. Got it approved back a few weeks later.

All I do now is pay a $30 annual registration fee (worth it to me) online (the state even emails me a reminder) and file state and Fed tax forms which just show $0 income (can't remember which forms; my tax preparer just does them along with my individual returns).

Your state should have a website which details the procedures for forming a corp/LLC. As I said, in my state, these are handled by the secretary of state.

I don't find any of these ongoing requirements a burden at all, but everyone has different needs.

[exkc135driver]

184, here are a few things to think about.

First of all, it is not necessary to reserve a name. It might be a good idea, or it might just be a waste of time.

There are many reasons the SecState may not allow a name ... typically, those written in non-Roman characters, more than X characters long, those deemed improper (sorry, no "F**k You, Inc.), and those confusingly similar to an existing name. There may be other possible reasons as well.

Get an idea of what name you want, then search for that name on your state's website. Search for the beginning of the name, but not the whole name. Clear as mud? OK, let's say that you're thinking of "Breezes By the Sea, Inc." If there is an existing company using "Breezes By the Sea, LLC" or perhaps "Breezes By the Seacoast, Inc." the SecState will probably not allow you to use the name you have selected. If you search just for "Breezes By the Sea, Inc., you will find whether that name is already in use but will not know if other, similar names are in use. So, using my example, you might search for "Breezes by" or maybe, depending on how many results you get, just "Breezes."

Once you have that info, the SecState may still decide that your name is confusingly similar to another name that is in use, but you will have dramatically reduced the odds that will happen.

What you gain by reserving a name rather than just filing the articles of incorporation with the name you want is time ... typically if you reserve a name the SecState will hold it for you for 30/60/90 days (whatever is the law in your state).

Need I mention that something like "I Own Lots of Guns, Inc." or "Assault Rifles R Me, Inc." might not be the best choice?

I dunno if there is a fee for reserving a name in your state. In Georgia it used to be free, but now it's $25.00. Hiss boo.

What I really wanted to address in this response was changing the corporation's address. You indicated that you move frequently. If you move within your state, that is a simple matter: you just file a little paperwork with the SecState and pay a small fee. But if you move out of state the rules change. Unless the SBR is going to remain in Oldstate at the corporate address therein (and the proper procedures for access to the SBR are followed per BATFE regs), then presumably the corp will move to Newstate and register with the SecState of Newstate to do business there as foreign corporation ("foreign" in this context meaning incorporated anywhere other than Newstate, whether that be another U.S. state or a foreign country). It will still have to maintain its registered agent in Oldstate, plus have another one (probably you) in Newstate. Also, of course, you will want to verify that Newstate (and Newcounty and Newcity as well) allow SBRs as (probably you know this already) you will have to have an ATF Form 5320.20 approved by BATFE to move your SBR to Newstate. (That form is required for interstate moves but not intrastate moves.) If you want to move to a non-SBR state, say Alabama, you are SOL and will have to make arrangements for the SBR to stay in Oldstate.

You can form a new corporation in Newstate and transfer the SBR from Oldcorp to Newcorp. Check with BATFE, but I betcha that they will consider it a taxable ($200) transfer. Can you convert the corporation from an Oldstate corporation to a Newstate corporation? Maybe, depending on the laws of Newstate. Would that constitute a taxable transfer? I do not know.

Hope this helps and that I haven't bored you to tears ...

The information posted above is provided for informational purposes only. It is not promised or guaranteed to be correct or complete. It is not legal advice nor is it a substitute for legal counsel whom you have retained and fully informed of all of the facts and circumstances which apply to your situation.

[khc3]

One other thing about choosing a name is that it will have to be engraved on any Form 1 items.

[184SFS]

exkc135driver,
Thanks for the information......I'm planning on returning home after this enlistment is done, so moving shouldn't be an issue then. Plus I wanted to use these weapons for training purposes as well, would this be allowed?

[khc3]

exkc135driver,
Thanks for the information......I'm planning on returning home after this enlistment is done, so moving shouldn't be an issue then. Plus I wanted to use these weapons for training purposes as well, would this be allowed?

Sure, there are no restrictions on lawful uses of a NFA firearm.

Edit to add: there may be state restrictions on using MG's or silencers for hunting (I've never seen any state hunting regs that mention SBR), but there are no Federal restrictions on the lawful use of a NFA firearm. Home defense, competitions...you can do it all.

[184SFS]

OK, now I need help on where I go from here: I've looked at the options that the SecState has, I want the Corp. route, now how would I get the weapons assigned to that corp?

[khc3]

OK, now I need help on where I go from here: I've looked at the options that the SecState has, I want the Corp. route, now how would I get the weapons assigned to that corp?

Simple, you just enter the corp's info in space 3b. for a Form 1 or 2a. on a Form 4.

No fingerprints, photo, CLEO sign-off or certification of citizenship are required.

[184SFS]

I was wondering if there's any benifits to which form I should choose? I thinking Form 1, but want to know what the plus & negative is with them. Thanks

[mtk]

I was wondering if there's any benifits to which form I should choose? I thinking Form 1, but want to know what the plus & negative is with them. Thanks

First and foremost, you need to do some more research on the NFA in general.

A Form 1 is to "make and register" an NFA firearm.

A Form 4 is to transfer an existing NFA firearm.

Which form you use depends on what you're trying to do. If you want to know the "benefits" of choosing a particular form, the only answer to that question is, "If you choose the right form, they'll actually approve your request and not send back a rejection letter."

In your case, if you want to register an existing rifle as an SBR, then you do a Form 1. If you want to buy an existing SBR from a dealer or an in-state private seller, you do a Form 4.